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16 New Proshares 3X Return ETFs Coming

by ETF Base on February 11, 2010

Proshares, the company that initially brought us several 2X daily return ETFs, is launching 16 new ETFs that will now return 3 times the daily return of the underlying indices. The new launches will be comprised of both long and short 300% daily returns for major US indices, emerging markets and US Treasuries. Not all tickers have been assigned yet, so be sure to subscribe here for an update when they’re launched.

Ultra MarketCap

TQQQ UltraPro QQQ®

UDOW UltraPro Dow30SM

UMDD UltraPro MidCap400

URTY UltraPro Russell2000

Ultra International

[ ] UltraPro MSCI EAFE

[ ] UltraPro MSCI Emerging Markets

Ultra Fixed-Income

[ ] UltraPro 7-10 Year Treasury

[ ] UltraPro 20+ Year Treasury

Short MarketCap

SQQQ UltraPro Short QQQ®

SDOW UltraPro Short Dow30SM

SMDD UltraPro Short MidCap400

SRTY UltraPro Short Russell2000

Short International

[ ] UltraPro Short MSCI EAFE

[ ] UltraPro Short MSCI Emerging Markets

Short Fixed-Income

[ ] UltraPro Short 7-10 Year Treasury

[ ] UltraPro Short 20+ Year Treasury

Considerations

Primarily, these ETFs are often poorly understood by retail investors. Due to the nature of daily rebalancing and volatility, the overall value of these instruments tend to decline over time (i.e. you can lose money on these even in a flat market). As such, they make for trades, but not long term investments. This effect is so pronounced that I’ve actually developed a rather lucrative method of shorting opposite pairs and shared my results in this short leveraged ETF article.

Also consider that FINRA recently imposed new margin requirements which makes it a bit more of a hassle to trade with these.